How to avoid property scams

The common scams

• Forged or defective title — the 'seller' doesn't actually own it, or the title is disputed.
• Double-selling — the same property sold to multiple buyers.
• Unapproved layouts / ghost projects — construction without sanction, or a project that never gets built.
• GPA (General Power of Attorney) 'sale' — sold on a power of attorney rather than a registered sale deed.
• Fake agents/builders and token/deposit scams — a large advance taken, then disappearance.

The checks that stop them

• Verify RERA registration of the project and the agent on your state RERA portal (Real Estate (Regulation and Development) Act, 2016).
• Get an Encumbrance Certificate from the state registration office and a lawyer's title search before paying anything.
• Confirm the PIN code with India Post if the locality on a listing looks wrong.
• Insist on a registered sale deed — a GPA does not transfer ownership (see below).
• Confirm approved plan, land use, and OC/CC for the building.
• Pay by traceable bank transfer with receipts — never large cash for tokens or deposits.
• Meet the actual owner and check their ID against the title documents.

Why a GPA is not a title

A General Power of Attorney does not convey ownership of immovable property. The Supreme Court held (Suraj Lamp & Industries v. State of Haryana) that GPA/agreement-to-sell 'transactions' do not create title — only a registered sale deed does. If a deal is structured on a GPA to 'save stamp duty', walk away.

If a price looks far below market or the seller is rushing you past due diligence, that is the red flag. Slow down and verify.